European Perspectives on Global Imbalances. Bruegel Working Papers, 2006/01, July 2006

Abstract

Alan Ahearne and Jürgen von Hagen explore the options European policy makers have in the context of global current account imbalances. Some Europeans are concerned that a disproportionately large burden of adjustment will fall on Europe when the European economy is not flexible enough to cope with a substantial appreciation of the euro. This paper was prepared for the Asia Europe Economic Forum conference in Beijing, 13-14 July 2006.